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Homework answers / question archive / Refer to the below tables
Refer to the below tables. has the absolute advantage in producing kiwis, while has the absolute advantage in producing potatoes. Production Possibilities: Country A and Country B In a given month the maximum amounts of only kiwis and only potatoes that the two countries can make are: Kiwis Potatoes Country A 24 24 Country B 18 9 Opportunity Costs: Country A and Country B To make Country A gives up: Gountry B gives up 1 kilo of Kiwis 1 kilo of potatoes 2 kilos of potatoes 1 Potato 1 kilo of kiwis 1/2 kilo of kiwis Country A Country A Country A Country B Country B. Country A Country B. Country B
Country A , Country A
( Absolute advantage indicates the ability of a country to produce larger quantity of good than another country. Country A is able to produce 24 units of kiwis and 24 units of potatoes. Country B is able to produce 9 units of kiwis and 18 units of potatoes. So County A had absolute advantage in the production of both.)
